The EUR/USD is as flat as a pancake this week, but after the recent weakness, it may be about to start rising again. While German data has softened, ECB’s hawkish rhetoric hasn’t. What’s more, the Fed’s rate hike probabilities have fallen, which has increased the dollar’s correction potential and thereby improved the EUR/USD forecast. With the FOMC already entering the black-out period, and just a couple of important data pointers to watch between now and the June 14 meeting, there won’t be many catalysts to fuel the dollar rally directly. Piling the pressure on the euro has been weak German data and there was more ... (full story)